India tightens foreign funding rules for NGOs

Since 2014, Prime Minister Narendra Modi's government has suspended or barred thousands of non-profit groups from receiving foreign funding, accusing some of using the funds for "anti-national activities".

The government issued amended rules to the Foreign Contribution (Regulation) Act (FCRA) this week.

Groups applying for FCRA registration must now specify their activities from an approved list. Those include education, health, culture, religion, economic development and social welfare, and declare where they will work.

They will also need to provide more detailed disclosures on their websites and social media accounts.

Annual filings must include expanded activity reports and project details of how foreign funds are spent, according to the new rules.

An organisation that has foreign nationals as its key functionaries will generally not be eligible to receive foreign funds.

The government has steadily tightened FCRA rules, including a major 2020 amendment that banned the transfer of foreign funds between NGOs, and cut administrative expense limits from 50 percent to 20 percent.

In addition, a fresh bill has also been introduced in parliament, seeking to strengthen oversight and expanding disclosure requirements for foreign-funded organisations.

Critics say the government has increasingly scrutinised foreign-funded organisations and tightened compliance norms, making it harder for them to operate.